A Study on Public Perception Towards Old and New Tax Regime

The implementation of the new tax regime under Section 115BAC, which coexists with the traditional old regime, has brought about revolutionary changes to the Indian income tax system. Various demographic and psychological elements have influenced the diverse public attitudes to this dual-option system. This study investigates how individual taxpayers view and favour the two systems. Ninety-two participants answered a structured questionnaire. The results of statistical analysis, including the Mann-Whitney U Test, Kruskal-Wallis Test, and ChiSquare Test, showed patterns in regime contentment, awareness, and affecting variables including age and wealth. The results show a stronger preference for the previous system because of the savings from deductions, but they also show that people are becoming more interested in the simplicity of the current regime. This report offers politicians guidance on enhancing taxpayer education.